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Two sequential innovations occurred in the evolution of the ATI’s (Air Transport
Industry) customer service process. Although they were not planned or
implemented to compliment each other, combined they have had a very positive
impact in the industry: decreasing costs and increasing frequency of
customer use (revenue).
The first innovation was the Frequent Flyer Program (FFP), introduced to create
customer brand loyalty or to retain customers. FFP’s have been successful,
if only measured by continued customer choice of airline brand, but at a
significant cost to the airline’s balance sheet – increased liability. The
second innovation was the deployment of self-service check-in kiosks, which
dramatically reduced the costs associated with the ticketing/check-in
process.
Unfortunately, the true benefit of these two innovations has never been
fulfilled. C. K. Prahalad proposed that customer value is created at a
point of exchange, e.g. at a ‘touchpoint’, in any transaction between a
customer and an airline or airport. Value is customer determined and
customer controlled. Therefore, a close integration of FFP and self-service
‘touchpoints’ will enhance a customer’s experience and thereby determine the
value of the product or service offered. This is the leading edge of
customer relationship management – identification and fulfillment of the
“Preferred Customer’s” expectations.
In order to identify and fulfill the expectations of the Preferred Customer, this paper
focuses on the next generation customer self-service systems that:
1.
Create positive customer experience, leading to retention (value),
2.
Exceed customer expectations using CRM “best practices” of permission
and dialogue marketing (retention),
3.
Utilize existing technology and customer ‘touchpoints’ (access
devices), and
4.
Exploit existing or new communications (delivery medium).
Implementing next generation customer self-service is well within the reach
of the ATI’s current technology infrastructure. What is needed is the
initiative to be truly creative and innovative – creating strategic
advantage within the ATI.
For some interesting blogs of the topic, see:
AirGate Solutions | 
